Powering National Renewal and Reinvigorating the Grid

Grid Under Pressure

After more than two decades of flat electricity demand, the United States saw a sharp increase in 2025, with further growth projected through 2026 and beyond. The primary driver is the explosive expansion of data centers supporting artificial intelligence, which now account for a dominant share of new load growth. Data center electricity consumption has grown more than 400% in the past ten years and 150% in the last five, with projections showing they could represent 6.7% to 12% of total U.S. electricity use by 2028.

This surge coincides with an aging grid—much of it built in the mid-20th century—and chronic delays in connecting new power sources. Interconnection queues, which backlog proposed generation and storage projects, peaked at around 2,600 GW in recent years before modest declines, yet median wait times for projects to come online have doubled to over four years. These bottlenecks slow the addition of renewables, batteries, and other resources needed to meet demand reliably.

The stakes are concrete: regional grid operators like PJM have seen capacity auction prices multiply dramatically—rising over tenfold in some delivery years—translating to billions in higher costs passed to consumers. Electricity prices rose nearly 10% on average in 2025, with further increases expected as utilities invest heavily in infrastructure. Reliability incidents, such as voltage fluctuations forcing data center disconnections, highlight growing risks of instability or blackouts if supply fails to keep pace.

Non-obvious tensions abound. Tech companies seek clean, firm power to meet net-zero pledges, yet grid constraints push some toward on-site natural gas generation or delayed builds. Policy debates pit rapid permitting for fossil or nuclear resources against environmental and community opposition to new lines and plants. While investments in grid upgrades reached record levels, annual high-voltage transmission additions remain far below what models suggest is necessary, creating a mismatch between ambition for economic and technological leadership and the physical constraints of an overstretched system.